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Transportation Power

Tesla's Stock Falls After News About Autopilot Crashes and Battery Fires (cnbc.com) 204

CNBC reports: Tesla shares fell almost 8% on Friday to their lowest close since December 2016, after the National Transportation Safety Board said the company's Autopilot driver assistance system was engaged during a fatal crash in March... The accident was at least the third of its kind in the U.S. and raises concerns about Tesla's Autopilot technology.
Thursday Elon Musk also told Tesla's employees that he and their CFO will now personally review all expenses going forward in a new "hardcore" attempt to control expenses, calling it "the only way for Tesla to become financially sustainable and succeed in our goal of helping make the world environmentally sustainable."

And then there's the fires, reports CNBC: Recent reports of Tesla vehicles spontaneously catching fire could make potential customers wary at a time when virtually every automaker is getting ready to roll out battery-based vehicles, industry executives and analysts worry... Three of Tesla's sedans went up in flames without warning in recent months, one in Shanghai, another in Hong Kong, a third in San Francisco. Tesla has experienced at least 14 known battery fires in recent years...

Of the 14 known fires involving Tesla vehicles, the majority occurred after a collision, but there have been a growing number of blazes in which its products appear to spontaneously ignite. That appeared to be the case when, on April 21, a security camera in a Shanghai garage captured images of a Model S sedan smoldering before suddenly bursting into flames. Another fire engulfed a Tesla sedan that appears to have been hooked up to one of the company's Superchargers in Hong Kong. Then, two weeks ago, firefighters in San Francisco tweeted that they had been called to a garage where another Tesla Model S was on fire.

In an initial response, the automaker said it did not think the sedan itself was responsible for the California blaze. But it is investigating the two Chinese incidents, it said in a statement, and "out of an abundance of caution, we are revising charge and thermal management settings on Model S and Model X vehicles via an over-the-air software update that will begin rolling out today, to help further protect the battery and improve battery longevity..."

"As the face of the emerging battery-car market, Tesla's troubles have been widely reported, but it is by no means the only manufacturer to have experienced unexpected fires..." reports CNBC.

"Fires have been reported with Chevrolet Volts, Fisker Karmas, Mitsubishi iMiEVs and other electric vehicles."
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Tesla's Stock Falls After News About Autopilot Crashes and Battery Fires

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  • by SigNuZX728 ( 635311 ) on Monday May 20, 2019 @02:39AM (#58621632)
    ...because it was wildly overvalued to begin with?
    • "...because it was wildly overvalued to begin with?"

      Nah, that can't possibly be the reason....
      *** sarcasmometer explodes ***

  • by mccalli ( 323026 ) on Monday May 20, 2019 @02:43AM (#58621642) Homepage
    This seems trade war-related, not specific to the speculation in the summary. All the car manufacturers fell.

    Standard disclaimer - not financial advice, not qualified to give, this advice is worth what you paid for it etc.
    • Re: (Score:2, Informative)

      by Anonymous Coward

      Ford lost 1%. That's not 8%.

      • by mccalli ( 323026 )
        True and I take the point. Tesla is a more volatile stock in general though - you'd expect exaggerated swings vs a more 'blue chip'. Neverthless, the trend of loss is the same and starts on the same dates.
      • Ford lost 1%. That's not 8%.

        So ford fell too?

    • by lgw ( 121541 )

      This seems trade war-related, not specific to the speculation in the summary. All the car manufacturers fell.

      While that's affecting the overall market, Tesla's problems are Tesla's. They've been in a cash crunch for years now, just barely scraping by each quarter for so long it's ridiculous. Things were looking up after Q4, but they sold 30% fewer cars in Q1 than Q4, suggesting Q4 was just pre-order backlog and not sustained interest.

      Tesla stock price is a bet on whether they will survive to become the size of Ford. News that suggests they're about to run out of cash to operate yet again, if that's how you read

  • It wouldn't surprise me if the "Chinese incidents" were sponsored by high-ranking CCP officials through their operatives, to make Chinese electric car makers more competitive. Let's not forget that Tesla is the #1 electric car manufacturer globally by a large margin. Tesla has a huge target painted on them, and CCP is unscrupulous. Compared to Falun Gong practitioners' organ harvesting, this is nothing.

    • Re: (Score:3, Insightful)

      Lazy reporters should do their job and follow the money.

      One person killed. How many died driving normal cars during that period? A hundred times more? Thousands? Tens of thousands worldwide?

      • One person killed. How many died driving normal cars during that period? A hundred times more? Thousands? Tens of thousands worldwide?

        Oh, this goes back to one of the oldest rules in journalism . . . :

        Dog bites man! : Not news.

        Man bites dog! : News!

        The big two US automakers think that, with their manufacturing expertise, they can build Teslas better and cheaper than Tesla. That's why they would like to see Tesla crater, so they cam scrape up all the Tesla IP at pennies on the dollar.

        So who is backing all the Tesla shorters . . . ? That would be interesting to see.

        • by sjbe ( 173966 ) on Monday May 20, 2019 @07:15AM (#58622358)

          The big two US automakers think that, with their manufacturing expertise, they can build Teslas better and cheaper than Tesla.

          Not quite. Ford and GM would rather not have to build electric vehicles at all. Tesla has forced them in that direction but they really aren't well set up to make BEVs. They haven't invested in battery technology adequately and more importantly they haven't built the secured supply chain necessary to build BEVs in serious volume. THAT is why they are delaying as hard as they can. They have excellent capabilities for assembly but they haven't invested in the supply chain necessary to really bring BEVs to market in a big way. They are relying on third parties for the batteries in most cases and that is going to bite them in the ass hard.

          Worse, they have huge investments in ICE engineering and supply chains and most of their engineers aren't up to speed on EV motors and batteries and software. I make wire harnesses for a living and I've worked with all of the big three on wiring. They are ridiculously far behind state of the art and good practices for almost everything electronic in their vehicles. They design bespoke harnesses for every vehicle they make, have virtually no standards for terminals or connectors or hardware or designs (with huge added cost mind you), their engineering of electronics is a hot mess often done by people who have no idea how to do it properly and efficiently, they routinely do things to save a few pennies now which cost dollars later on, etc. And their software prowess is shockingly bad.

          • TLSA hasn't forced crap. CARB - the State of California's air quality board - forced electrics and hydrogen vehicles. TSLA isn't a profitable business model, and makes essentially nothing, in terms of production. Ford built about 7 million cars last year, compared to TSLA at 245,000. GM did about 8.4 million cars. TSLA hasn't forced anything, it's been the laws passed in California that forced the issue.
            • by uncqual ( 836337 )

              CARB, as odious as they sometimes are, has not forced anyone to buy a Tesla or any other BEV. Although, CARB may have helped created an opportunity for Tesla in terms of investors being somewhat more willing to invest in a BEV company with the expectation that CARB et al will penalize ICE cars in various ways.

              • If you don't sell enough ZEVs, then you pay significant penalties. Considering the penalty is larger than the profit on most vehicles sold in California, that penalty basically means you sell non-electric vehicles at a loss. That's a pretty big stick to force compliance. The only option is to either sell your own electric vehicles (which have shown very soft demand unless you sell - like Tesla - at a loss), or to buy credits from other companies who sell lots of EVs. And the sale of those ZEV credits fr
                • by dgatwood ( 11270 )

                  ... which have shown very soft demand unless you sell - like Tesla - at a loss ...

                  That's simply not true. As far as I'm aware, no Tesla car has ever been sold at a loss.

                  Tesla as a company is losing money because they are taking on debt to build the infrastructure required for future sales and market expansion. Where major auto manufacturers can just switch a line from building gas-guzzlers to building EVs by retooling the drive train bits, Tesla actually has to build the facilities to do their manufacturi

                  • Tesla has yet to turn an annual profit, and if they weren't getting ZEV credits, their two positive quarters would have been losses, too (and even so, their "profits" for those two quarters were just wiped out by the loss for Q1 2019). Once they turn a profit, you can talk about Tesla selling cars for a profit. Right now, they lose. And that's based on COGS + SGA: cost of goods sold minus cost of sales and administration (in other words, not including capital expenditures, R&D, etc).
                    • by dgatwood ( 11270 )

                      A decent percentage of Tesla's SG&A expenses are effectively capital expenditures, whether you want to call them that or not. They're the cost of staffing up in new markets, plus starting the ramp up for production of the Model Y. Using COGS + SG&A grossly distorts the profitability of most startups, making it a relatively poor metric for evaluating a company in a rapid growth period.

                      Frankly, COGS by itself is a better metric.

                    • COGS by itself is meaningless... Unless you like Uber-like profitability (meaning - none). Gross margin is irrelevant; net margin is everything. Sales and administration are huge for Tesla, about 25% of revenues, because unlike traditional brands they run their own sales stores. If they took the model of every other brand out there (have dealerships), their SG&A would probably be in-line with industry standards of 8-10%, and revenues would be down 1-2% (car dealer margin) - and they'd be profitable.
      • GM ignition switch didn't need thousands before the outcry. The difference here is that when mass production manufacturer makes mistakes, those mistakes are mass produced.
    • It wouldn't surprise me if the "Chinese incidents" were sponsored by high-ranking CCP officials through their operatives, to make Chinese electric car makers more competitive. Let's not forget that Tesla is the #1 electric car manufacturer globally by a large margin. Tesla has a huge target painted on them, and CCP is unscrupulous. Compared to Falun Gong practitioners' organ harvesting, this is nothing.

      Yep. If you watch the video of the "fires" it looks staged, nothing like a lithium battery fire.

      Besides, a wholew load of gasoline cars have also burst into flames in the same period. Where's the headline news stories on those?

    • by willy_me ( 212994 ) on Monday May 20, 2019 @03:39AM (#58621760)
      Awfully convenient how the Shanghai security camera did such a good job positioning the Tesla within the frame. Perhaps the parking garage was filled with cameras. If not, sabotage is a very real possibility. Much less expensive then a commercial promoting your own product.
    • Let's not forget that Tesla is the #1 electric car manufacturer globally by a large margin.

      So? Tesla built 245,000 cars last year. That's one week of production for Toyota, alone. Being the dominant player in a tiny, sliver of a niche of the overall market really doesn't mean anything.

      Furthermore, they WERE the #1 electric car manufacturer. BYD builds more than they do [bloomberg.com], by a solid 50% (30K/month versus 20K/month), and it's growing quite fast. Both are bit players in the market, but Tesla became and even smaller bit player...

  • by Kokuyo ( 549451 ) on Monday May 20, 2019 @02:49AM (#58621652) Journal

    I'm reading online that Tesla has 532'000 cars sold.

    14 battery fires is somewhere around two thousandths of a percent. I think we can chalk them up as freak occurrences.

    But a headline is a headline, amirite?

    • Re: (Score:3, Insightful)

      by AmiMoJo ( 196126 )

      Autopilot is the bigger issue. It's just been nerfed in the EU and Japan by new UN standards that limit the amount of steering it can do, and most of the advanced features (like enhanced summon, navigate on autopilot, no confirmation lane changing etc.) have never been available in those regions anyway.

      FWIW this also affects Audi's self driving systems too.

      • by Kokuyo ( 549451 ) on Monday May 20, 2019 @03:03AM (#58621684) Journal

        I have never thought that autopilot was actual self-driving capability. At this point, anybody using it like that deserves everything they have coming for them.

        Sute, if autopilot is a big selling point for a lot of people, then the stuck downturn probably even makes some sense. I'm just saying if it ever was a selling point to somebody, that person needs to be taken out back and shot for the good of mankind. (personal opinion, though)

        • by Kokuyo ( 549451 )

          Edit for stupid typos:

          I have never thought that autopilot was actual self-driving capability. At this point, anybody using it like that deserves everything they have coming for them.

          Sure, if autopilot is a big selling point for a lot of people, then the stock downturn probably even makes some sense. I'm just saying if it ever was a selling point to somebody, that person needs to be taken out back and shot for the good of mankind. (personal opinion, though)

        • by AmiMoJo ( 196126 ) on Monday May 20, 2019 @03:34AM (#58621744) Homepage Journal

          Tesla literally calls it "full self driving" now. It's still level 2 driver aids but that's the name they have given to those features.

          It's not just a selling point either, Tesla is betting on it as a major source of revenue in the near future. At the recent "autonomy day" investor event Musk promised that they would have "feature complete" level 5 robocars this year, and start up a robotaxi service next year.

          Tesla asked investors to give them money on the basis of having a revenue-generating robotaxi service running by next year. Full driverless taxi service.

          • I hear women at the gym talking about wanting to buy a Tesla so that they can take a nap while the car drives their kid to school. Tesla sure is getting a lot of publicity from this misleadingly-named feature.
        • I'm just saying if it ever was a selling point to somebody, that person needs to be taken out back and shot for the good of mankind. (personal opinion, though)

          Out back would get really full . . . really fast.

        • And what about the other road users who also end up dead?
      • and most of the advanced features (like enhanced summon, navigate on autopilot, no confirmation lane changing etc.) have never been available in those regions anyway.

        Autopilot (or rather: Enhanced Autopilot) has been tweaked rather than nerfed in Europe, and it still varies per country. No Confirmation Lane Change doesn't seem to be enabled, but Dutch Model 3 drivers report that Navigate on Autopilot is available, though you have to confirm lane changes and NOA cuts out the second you cross the border into Belgium...

        This regulatory stuff might affect other automakers a lot more than Tesla though. Thus far Tesla has handled these challenges with simple OTA software

        • by AmiMoJo ( 196126 )

          Other car manufacturers either do OTA updates (e.g. Audi) or they got their systems type-approved up front (Nissan, Kia, Hyundai).

          The EU is looking to harmonize the standards so that you don't get the issue with features cutting out as you cross borders, so have selected the UN standard to start with. As such, Dutch drivers will get their EAP nerfed soon. In fact all Teslas in the EU will, because the current software exceeds the limit on steering input.

          Basically level 2 systems like Tesla Autopilot are not

    • 14 fires, most of which occurred after a collision. With "a growing number" of spontaneous fires. In this case "growing" still means less than 7, and it sounds like it's just the 3 recent incidents mentioned in TFA.

      All these incidents of spontaneous fires are fairly recent though, which could mean a quality control issue which is kind of worrying.
      • by Kokuyo ( 549451 )

        It COULD in the sense that the complexity of DNA COULD point to there being a God.

        The sample size is way too small and the timeframe way too short to make assumptions over quality issues.

    • I'm reading online that Tesla has 532'000 cars sold.

      14 battery fires is somewhere around two thousandths of a percent. I think we can chalk them up as freak occurrences.

      But a headline is a headline, amirite?

      Headlines are based on either lies, damn lies, or statistics. While I agree the headline is sensational your analysis of the situation is falls under damn lies or statistics.

      The total is interesting when considering how overall safe something is.
      The trend is interesting when considering how quality control is being handled, are there more now than there were in the past?
      The type is interesting for identifying root causes. 11 of the past fires have been the result of accidents. The other 3 were spontaneous.

    • Let's not forget there are a LOT of short sellers out there who are absolutely desperate for Tesla's stock price to come down. They have influence in our media, and they can and will cause negative stories to be published. Someone should do an analysis of Slashdot's stories about Tesla and see if they're more negative than average.
    • by Entrope ( 68843 )

      What fraction of similarly aged gas-fueled cars have caught fire over the same time span? Usually, things like that become a problem when the car gets old. Or think back not very long to the Galaxy Note 7. What fraction of devices do you think can spontaneously combust before owners (or their neighbors) should start to worry?

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      Yeah, how come this is front page and not the over 50 bmws that have randomly ignited while parked with the engine off. Tesla just gets all the FUD, wonder why?

      https://abc7chicago.com/automotive/bmw-car-fires-more-fires-reported-in-parked-cars-while-engines-off/5121834/

    • Re: (Score:3, Insightful)

      by mjwx ( 966435 )

      I'm reading online that Tesla has 532'000 cars sold.

      14 battery fires is somewhere around two thousandths of a percent. I think we can chalk them up as freak occurrences.

      But a headline is a headline, amirite?

      Not in the car industry.

      There were 17 significant cases of ignition fires for GM, the recall was 2.7 million vehicles. That was GM, who are known to be cowboys so most other manufacturers are better.

      I once had a Honda Integra DC5, I had a recall notice when it was 9 years old for the brake master cylinder due to two failures, Honda replaced the brake master cylinder in every car that used that part (Would have been the Civics of the same age as well). No-one had died, but hundreds of thousands of cars

    • by Holi ( 250190 )
      35 Note 7's caught fire and they recalled and discontinued the entire line. They definitely sold far more then 532000. Probably a similar percentage.
    • I'm reading online that Tesla has 532'000 cars sold.

      14 battery fires is somewhere around two thousandths of a percent. I think we can chalk them up as freak occurrences.

      Absolute numbers are meaningless in quality control. The data needs to be normalized and compared. What percent of Toyota Camry's catch fire?

      I have this problem all of the time. The customer service people say, "We have 50 failures of product X, and only 10 of product Y! You need to fix product X!"

      When I look at the data, I find out we sold 100,000 of product X and only 5,000 of product Y. Product Y is actually 4 times worse than product X.

      The reason the customer service group comes to me is beca

  • At least not under Musks rule. I doubt these battery fires will be the issue, the percentage of cars sold is tiny, the main problem with Tesla is it simply isn't making any money and it really should be by now. However whatever the outcome for the company they've shown what CAN be done with electric vehicles - ie they can be extremely fast and don't have to look like they were designed in a kids lego class and for that we have to thank them and Musk (dick though he is elsewhere in life) for showing that, an

    • There isnt a person on this planet as passionate about Automobiles as Musk. He started a fucking rocket company... an almost impossible task... especially if you start out as poor fucks like us.
      • What are you talking about? Every tech bro who gets rich starts a rocket company. Something to do with penis size I think. They all think they can escape the planet. And plus, Musks father was a millionaire.

  • Popcorn's moving up!

  • "As the face of the emerging battery-car market, Tesla's troubles have been widely reported, but it is by no means the only manufacturer to have experienced unexpected fires..."

    Unless you are intentionally trying to set the car on fire by definition ALL car fires are unexpected. And there are FAR more [cnn.com] of them for ICE vehicles than for BEVs - to the point where BEV car fires are literally a rounding error. 174,000 car fires in 2015 and virtually all were ICE vehicles.

  • Thursday Elon Musk also told Tesla's employees that he and their CFO will now personally review all expenses going forward in a new "hardcore" attempt to control expenses

    Speaking as an accountant I can say with certainty that it is literally not possible for the CEO of a company anywhere close to the size of Tesla to review "all expenses". The leadership team could review most/all expenses above a certain size but they literally don't have the time to review every paperclip purchase. Accounting simply doesn't work like that. Basically he would have to be having people report details to him that are already pre-filtered. And below a certain size companies don't have time

  • The media is constantly focused squarely on every little thing they announce, change, tweet about, and anything somebody does with one of their products that they deem newsworthy. The name generates page views or eyeballs tuning in. Tesla has strong proponents with an almost religious fervor, as well as detractors who have money riding on the company failing.

    That said? I own and drive a Tesla S myself, so I'm obviously concerned when reports start saying my car could suddenly catch fire.

    As I read most of

  • But when a Tesla has an accident or a fire OMFG! A TESLA ACCIDENT!!! Seriously, the anti-EV propaganda from US car makers and oil companies is out of control.

    FEMA stats:

    "Each year, from 2014 to 2016, an estimated 171,500 highway vehicle fires occurred in the United States, resulting in an annual average of 345 deaths; 1,300 injuries; and $1.1 billion in property loss."

    https://www.usfa.fema.gov/down... [fema.gov]

  • by Syberz ( 1170343 ) on Monday May 20, 2019 @08:49AM (#58622810)
    The only problem with Tesla's Autopilot is the name. If it was called Driver Assist or Advanced Cruise Control then it wouldn't be in the news so much, for the same reason Cruise Control is never mentioned when someone has an accident for not breaking in time due to their feet no longer being on the pedals.
  • by Dan East ( 318230 ) on Monday May 20, 2019 @08:55AM (#58622842) Journal

    Take a look back over the century of the history of the automobile, and try to contemplate the number of people who have died as the technology was developed. How many people died from brake failure before cars had hydraulic brakes coupled with a redundant mechanically linked emergency brake? Or before tires had steel belts in them. Or safety glass. Specific car models, like the Ford Pinto, that would essentially explode like a bomb when rear-ended because the fuel tank was unprotected.

    Hundreds of thousands, if not a million deaths, as the industry developed and learned and were regulated. If the automobile did not already exist, and given today's news reporting and the weak stomach of society to take risk for the sake of advancement, I don't see how automobile could ever come into being at this point in time.

    The fact that every last case and piece of information can now be reported and disseminated to the masses (and, for some reason, IS reported for specific entities such as Tesla) doesn't mean it has to be. Right now, people are dying in car accidents in non-Tesla vehicles due to flaws in those cars. Each day ICE cars catch on fire - many while being operated, but also ones that are just parked in a garage. Yet perfection is expected out of Telsa. I don't own stock, and I don't own a Tesla or have any particular reason to defend Tesla (besides the fact that I think they seem to be one of the few auto manufactures making serious advancements), but I can easily recognize this strange bias against Tesla that does not seem warranted.

    • I can easily recognize this strange bias against Tesla that does not seem warranted.

      Some theories:
      1. There is a huge short position against Tesla. [nasdaq.com] This invites subterfuge and FUD.

      2. TSLA has achieved the 'Trump effect', where "Two Scoops!" [duckduckgo.com] frivolous reporting generates clicks and advertising revenue. In the pattern of 'if it bleeds it leads', negative news is perhaps more easily construed than positive news.

      3. There exists contrarians who would take a shit on a masterful artwork, just so they can distinguish themselves and garner attention. Tesla and by extension Musk isn't above criticism

  • Call me old fashioned, but how about people just drive while they drive?

    • Call me old fashioned, but how about people just drive while they drive?

      Because most people don't drive for the sake of driving. It is usually considered wasted time, when one would rather be preoccupied with something else. I know I'd rather be reading when stuck in traffic, than watching for car in front of me to inch forward so I can inch forward too.

      Perhaps you mean how about people just drive, and not use driver assist technologies until autonomous driving is fully matured? Tech needs its early adopters. The risks involved seem much less exceptional when taking into consid

  • A couple of years ago, one of my uncles was killed in his above garage office when an ICE parked in his garage caught fire and the fire progressed so fast that it overheated a nearby propane tank that exploded before anyone knew there was a fire. The theory is that the explosion knocked him out after which he died of smoke inhalation before rescuers arrived.

    Knowing this and having experienced two vehicle fires while simply driving down the road in my lifetime, I figured it is not uncommon and looked up some

  • The only way for "Tesla to... succeed in our goal of helping make the world environmentally sustainable" is to go out of business. Biofuels are and always will be the only carbon negative option. Want to guess how many Teslas will still be running in 20 years? Guess how many people who buy 8-10 year old cars have $5k laying around to replace their battery packs?

    • Biofuels are and always will be the only carbon negative option.

      Name one then, and I'll point to CO2 emissions from externalized factors, such as fertilizer or processing.

      Internal combustion and mechanical transmission will always be a Rube Goldberg solution compared to the elegance and efficiency of electrical storage and electric motors. Go to your nearest Walmart parking lot and take a good long look at the surface, and notice the streams and estuaries that rainwater is discharged into. Then maybe realize that even if ICE was powered by unicorn farts it still would b

  • This same sort of communication comes out routinely at my current place of employment. Usually around travel and expense accounts, neither of which I use more than once a year at best. What I find funny about this is that they keep escalating the 'reviews' to higher and higher persons of title. How is it simply not the case that someone runs a query on the travel expenses for a given period. Pulls out the top 10 and berates those abusers never to do it again or their fired. Instead it's a weird passiv

  • ...he and their CFO will now personally review all expenses going forward in a new "hardcore" attempt to control expenses, calling it "the only way for Tesla to become financially sustainable...

    1.There is a zero-point-zero percent chance that he and their CFO will 'personally review all expenses'. This has to be targeted at truly stupid investors that don't realize how large a company like Tesla is.

    2. If this is the ONLY way to become financially sustainable, then your company is screwed.

    3. You don't trust the people below your to properly review expenses? You are screwed. And suck at hiring people.

    4. I thought Tesla maybe had a chance to become a real, profitable company going forward w

  • Do I really have to repeat myself?

  • I wonder how EV accident-related fires compare with automobile fires from autos with tanks full of extremely combustible gasoline? More? Less? Hmmm... /s

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